Daiwa Motor Transportation

Basic Information

Stock Code
9082
Industry
Land Transportation Industry
Category Detail
Land Transportation
Prefecture
Tokyo
Establishment Year
September 1939
Listing Year
May 1949
Official Website
https://www.daiwaj.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hotman, Mie Kotsu Group Holdings, Takigami Kogyo, Unotetsu, Niigata Kotsu, Daiichi Kotsu Sangyo, Kanagawa Chuo Kotsu, Kamihime Bus, Hokkaido Chuo Bus

Overview

Daiwa Motor Transportation is a flagship taxi and hire car operator based in Tokyo and founded in 1939. As one of the four major Tokyo companies, it is an industry leader with a unique value chain that combines a large vehicle fleet and related real estate operations.

Current Situation

For the fiscal year ended March 2024, Daiwa Motor Transportation posted consolidated sales of approximately 18.4 billion yen but operating losses. As one of the four major taxi companies in the Tokyo area, it operates around 2,400 vehicles. It pursues business diversification through multiple consolidated subsidiaries in fields such as real estate leasing and fuel sales. Since integrating with the Shinwa Business Cooperative in 2011, it has expanded its scale and actively introduced IT technologies like the smartphone dispatch app 'S.RIDE'. While intensifying competition and talent acquisition pose challenges, its real estate holdings and self-contained group business structure are strengths. It aims for sustainable operations and, in the medium to long term, stabilization of its taxi business in the Tokyo metropolitan area. In recent years, it has focused on strengthening partnerships and adopting new technologies, contributing to efficient service delivery and industry reform.

Trivia

Interesting Facts

  • Daiwa Motor Transportation is one of the major taxi companies forming the Tokyo Four Sales Committee.
  • Founded in 1939, it has a long history dating back to prewar times.
  • Company logo features a unique design with double circles enclosing the character 'Wa'.
  • Operates approximately 2,400 taxi vehicles in the Tokyo area.
  • Owns numerous subsidiaries in fuel sales and real estate management.
  • Early entrant into smartphone dispatch, promoting IT adoption in the industry.
  • Once temporarily expelled from the Tokyo Four Sales Committee amid legal disputes.
  • Owns multiple rental buildings in prime Tokyo locations.
  • Expanded business scale through strengthened ties with local wireless taxi cooperatives.
  • Jointly operates S.RIDE app services with major group companies.
  • Consolidated workforce of around 2,500 employees, large-scale staffing.
  • Focuses on improving hire service quality, serving many corporate clients.
  • Major shareholders include industry players like Tōto Jidōsha Group.
  • Tokyo's only TSE-listed pure taxi operator.
  • Engages in regional welfare services and actively participates in social contributions.

Hidden Connections

  • Builds extensive network with small and medium taxi operators via Shinwa Business Cooperative.
  • Collaborates with Sony and subsidiaries on advanced dispatch app initiatives.
  • Operates joint dispatch apps with peers, advancing industry IT collaboration.
  • Owns Japan Taxi Meter for automotive meter production, handling in-house vehicle maintenance.
  • Historically an owner-operated company managed across three generations of the founding family.
  • Stable capital ties with insurers and city banks among major shareholders.
  • Headquarters in Koto-ku, Sarue, Tokyo, a strategically vital transport hub location.
  • Partners with peers Kokusai Jidosha and Green Cab for joint fixed-fare services.

Future Outlook

Growth Drivers

  • Stable passenger demand in central Tokyo.
  • Dispatch efficiency and customer convenience via IT technologies.
  • Steady corporate hire car demand.
  • Scale advantages from group collaboration.
  • Expansion of next-gen vehicles compliant with environmental regs.
  • Growth in urban mobility services market.
  • Rising welfare service needs amid aging society.
  • Spread and utilization of smartphone dispatch systems.
  • Brand maintenance through region-focused services.
  • Service quality uplift via safe driving and driver training.
  • Network expansion with small/medium taxi operators.
  • Improved market environment from government urban transport policies.

Strategic Goals

  • Achieve operating profit black ink through service efficiency.
  • Full fleet transition to eco-vehicles (hybrids/EVs).
  • Complete integration and enhancement of digital dispatch systems.
  • Expand market share in corporate hire cars in capital region.
  • Further strengthen group management structure.
  • Align sustainability with international standards.
  • Expand regional welfare business and boost social impact.
  • Actively address labor environment improvements in taxi industry.
  • Develop new services for diverse mobility needs.
  • Actively introduce advanced domestic/international transport tech.

Business Segments

Corporate Shuttle Services

Overview
Provides high-quality hire car and regular shuttle services tailored to corporate clients.
Competitiveness
Large-scale vehicle deployment and 24-hour dispatch capabilities
Customers
  • Major corporations
  • Government offices
  • Hotels
  • Travel companies
  • Hospitals
Products
  • Hire contract operations
  • Regular shuttle services
  • VIP shuttles
  • Airport transfers

Wireless Dispatch System Operations

Overview
Uses IT to streamline vehicle dispatch within the group and enhance service quality.
Competitiveness
Proprietary wireless network and app management expertise
Customers
  • Shinwa Business Cooperative affiliates
  • Individual taxi operators
Products
  • Smartphone dispatch app S.RIDE
  • Wireless dispatch network management

Real Estate Management and Services

Overview
Integrates management of leased building assets with related services.
Competitiveness
Efficient operations through group synergies
Customers
  • Building tenants
  • Group companies
Products
  • Building leasing management
  • Maintenance services
  • Security management

Fuel Sales Business

Overview
Stably supplies fuel to group and external entities.
Competitiveness
Extensive sales experience and regional networks
Customers
  • Group vehicle managers
  • General businesses
Products
  • Light oil and gasoline supply
  • Vehicle maintenance supplies sales

Competitive Advantage

Strengths

  • Tokyo's largest vehicle fleet size
  • Broad group structure centered on Shinwa Business Cooperative
  • Stable revenue base leveraging owned real estate
  • Early adoption and rollout of IT dispatch systems
  • Risk diversification across diverse business areas
  • Established brand power and reliability
  • Maintenance of high service quality
  • Prominent position as one of the industry’s four major players
  • Strong corporate customer base
  • Regionally focused service deployment

Competitive Advantages

  • Strategic location of key sales offices across central Tokyo
  • Successful business diversification via consolidated subsidiaries
  • Enhanced customer convenience through smartphone app 'S.RIDE'
  • Self-contained value chain including in-group fuel sales and maintenance
  • Expertise in operating large-scale wireless dispatch systems
  • Thick customer base from long track record
  • High-quality response for corporate hire services
  • Service improvements via vehicle renewals and eco-friendly introductions
  • Flexible organizational structure adapting to industry changes
  • Strong community relationships

Threats

  • Intense price competition with rivals
  • Challenges in securing drivers due to labor shortages
  • Rising operating costs from traffic and environmental regulations
  • Fierce competition in smartphone dispatch apps
  • Shifts in demand from emerging mobility services
  • Demand decline due to COVID-19 impacts
  • Cost pressures from soaring fuel prices
  • Business impacts from regulatory changes
  • Effects from reorganization of local public transport
  • Demand fluctuations during disasters

Innovations

2024: S.RIDE App Dedicated Vehicle Operations Launch

Overview
Simultaneously launched S.RIDE dedicated dispatch vehicles with Kokusai Jidosha and Green Cab.
Impact
Improved service efficiency and customer satisfaction through increased smartphone dispatch usage.

2023: Introduction of Smartphone Dispatch App 'S.RIDE'

Overview
Jointly introduced smartphone dispatch app with group companies and partners to tap new customer segments.
Impact
Achieved younger customer acquisition and digital transformation.

2022: Full Subsidiary Acquisition of Miyazono Sekiyu

Overview
Made Miyazono Sekiyu a wholly owned subsidiary to strengthen fuel sales.
Impact
Enabled stable in-group fuel supply and improved cost competitiveness.

2020: Subsidiary Acquisition of Marui Jidosha

Overview
Acquired Marui Jidosha as subsidiary to expand in Tama area and reinforce regional strategy.
Impact
Expanded service coverage and improved management efficiency.

2021: WEB Taxi Joint App Launch

Overview
Introduced PC/smartphone dispatch WEB app jointly with Tokyo Musen, Checker Cab, etc.
Impact
Promoted IT-ization of dispatch operations and enhanced customer convenience.

Sustainability

  • Promotion of hybrid and EV eco-friendly vehicles
  • Reducing in-house energy use and improving fuel efficiency
  • Cooperation in local environmental protection activities
  • CO2 reduction via digital dispatch systems
  • Enhanced safe driving training and employee health management
  • Promotion of energy-saving equipment in real estate operations
  • Research on sustainable mobility and policy participation
  • Strengthened collaboration with local transport networks
  • Diverse hiring and workstyle reforms
  • Thorough provision of safe and reliable services